Tech M&A Update M&A Impacting Connections between Brands, Consumers and Digital Things

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1 since 1987 Ocber 2014 INDEPENDENT INVESTMENT BANKING FOR MEDIA, INFORMATION, MARKETING & TECHNOLOGY Tech M&A Update M&A Impacting Connections between Brands, Consumers and Digital Things This month s letter is written by David Clark, Managing Direcr (see bio below) Here at JEGI we are gearing up for our first annual Connected Conference, centered around the Internet of Things and taking place in November in San Francisco. We re producing the event with the help of our friends from Strategy& (formerly Booz & Company), which is now part of PwC. Like JEGI, Strategy& is laser focused on trends and opportunities in the technology, marketing, and media worlds and where they intersect. In prior months, our Tech M&A Update covered Always On CRM, Mass Personalization, and The Connected Home, each of which speaks an increasingly connected and converging world via data, services and devices. With those prior report pics in mind, we revisited some recent secr transactions gauge the impact that M&A is having on enabling or strengthening connections between brands, consumers and digital things. Always On CRM Traditional CRM implies the use of first-party cusmer data better understand who bought what, who might buy, and how that translates in cusmer value. Always On CRM implies the use of multiple sources of data draw connections between why someone bought, how they bought, and how they got there (attribution) using ad exposure, search, and device usage data, for example. In the past few months, all of the major marketing data providers (Alliance/Epsilon, Acxiom and Experian) have made notable acquisitions that get them closer more persistent and connected CRM data. Epsilon s September 2014 acquisition of Conversant (fka ValueClick) provides Epsilon with direct access online traffic data from affiliated publisher sites, and via Domi (itself a recent acquisition of ValueClick s), direct access real-time ad serving and ad exposure data, all of which can be used enrich first party cusmer data for campaign targeting and optimization. That s a big connect for Epsilon, whose traditional strong suits are database marketing and loyalty programs. In May 2014, Acxiom acquired LiveRamp, a data onboarding specialist, with the express aim of building a marketing Data Management Platform that (finally) connects offline and online cusmer data, which Acxiom has a fair amount of. And Experian s acquisition of The 41st Parameter is uniquely (and spookily) focused on verifying the connection between consumers and their mobile devices. Which tend be Always On. Mass Personalization JEGI Co-President Scott Peters wrote on this pic recently. It is a rapidly evolving field. Version 1 of Mass Personalization might be viewed as credibly cusmized online ads and offers. For example, it s easy glean that I am in-market for holiday vacation travel, so I m not surprised that you re showing me a targeted ad that features my destination. Version 2 is the very mature recommendation and offer engines that sit behind better built e-commerce sites, or better built apps that directly connect consumers with day--day service providers your bank, 401K, and frequent flyer programs. Today, flawless performance on the part of e-commerce merchants and primary service providers are table stakes. As a provider, you better know who I am when I show up, and you better alert me when there is something I 1

2 need know. This form of mass personalization is very much embedded in day s e-commerce and online cusmer care applications. Version 3 is the wild proliferation of subscription-based consumer services that are far more discretionary, such as Amazon, Netflix, Spotify, Pandora, etc. In their current form, these services are about convenience and lifestyle, or in marketing parlance, concierge and curation. But underneath, they are further conditioning consumers share detailed personal profiles (product preferences, purchase intent, financial data and even medical conditions), presaging a new class of digital service providers that consumers will entrust with highly personal decisions and transactions. Big brands will lead in this area and are planting many seeds. Apple s acquisition of Booklamp (product recommendation); Yahoo s acquisition of Flurry (app subscription and in-app purchase data); and Google s acquisition of Lynx Design (medical moniring). The services will continue evolve as consumers become more comfortable with the passive moniring capabilities that are creeping in sres, your phone, your FitBit, and your home. Connected Devices Connected devices will sit at the center of the Internet of Things. As covered in our most recent update by Joseph Sanborn (JEGI s Co-Head of Technology), Google s recent acquisition of Nest (IP-connected home moniring systems) and Samsung s acquisition of SmartThings (home aumation and sensor systems) represent a push in developing the home-based hub for the mobile sensors that we carry around in our pockets and purse, as well as the sensor data that we drag in our wake. Via carrier systems, GPS, WiFi and Blueoth, our phones and other wearables are constantly connected networks that certainly know where we are, and increasingly know what we re doing. Combined with low-power, low-cost beacon arrays (courtesy of Apple), our location can be tracked with greater precision. Merchants can see us cross geo-fences around their sres and can see us standing in front of specific displays. Loyalty and Wish List apps can see us, o, and connect with Always On CRM systems present us with time and placed offers, or maybe after we ve seen a reinforcing ad at home. And late at night, when our recently purchased Thync (mood moniring and neuro-signaling device) senses that we re feeling flush (this is real!), our device can connect with our home aumation system, check that we have room in the closet, and buy that sweater while we sleep. CapitalOne just acquired a UI/UX firm make sure the payment interface will be pleasing. Experian will verify our identity. Futuristic? Yes. Foreseeable? Yes. All of the ingredients and connections are in place: the data, the software and hardware, the service providers, and growing consumer acceptance. These pics and developments will be p of mind at our upcoming event, and we look forward connecting with you then. For more information on the JEGI Connected Conference, click here: Also, we are pleased be sponsoring SIIA s upcoming Business Information & Media Summit (BIMS) on November in Miami. BIMS will be the largest gathering of information and media leaders in the US, with more than 400 p executives anticipated attend. Please register here: and enter the discount code BIMJEGI100 for $100 off the non-member conference rate. These are our brief highlights for Ocber. Please stay tuned for the next issue of our Tech M&A Update, and don t hesitate contact us discuss any pics related JEGI s Tech Coverage or your company s M&A strategy. David Clark, Managing Direcr Office: (212) davidc@jegi.com 2

3 September M&A Transactions in JEGI Tech Coverage Buyer Seller Target Description Enterprise Value ($mm) Deals with Values (by size) Cognizant Technology Solutions Rakuten Otter Media (AT&T, Chernin Group) Conifer Health Solutions (Tenet Healthcare) Catalina Marketing (Berkshire Partners) Cox Enterprises Millenial Media Mobli Technologies 2010 ParTech TriZet Ebates Performance Marketing Fullscreen Springfield Service (SPi Global) Cellfire Experience Nexage Pheed Brink Software Provides IT and service solutions for health plans, benefits administrars, care providers, hospitals, etc. $2,700 Offers online cash back shopping services. $1,000 Enables the creation and sharing of video content with the connected generation through technology and services. Operates as a revenue cycle management and clinical documentation improvement firm for the healthcare industry. Provides load--card digital coupons in the consumer packaged goods market. Offers a mobile-based ticket service improve the live experience at concerts, sports games, etc. Provides a mobile ad platform for publishers, developers, media buyers, agencies and advertisers. Offers a mobile app that enables users share voice notes, music, phos, videos and text. Provides a cloud-based point of sale and restaurant management software for the hospitality industry. $250 $235 $100 $100 $88 $40 $17 STATS (Vista Equity) BSports (Bloomberg) Provides data and analytics for the sporting industry. $15 Yahoo! Bookpad Offers DocsPad, a solution that gives developers a way insert Google Docs-style functionality in their apps. $8 TELUS Health Solutions ZRx Prescriber, Canadian Operations Comprises electronic-prescription healthcare technology development rights. $6 Certive Solutions Knowledge Capital Alliance Provides cloud-based, business process management software solutions the healthcare market. $1 Deals without Announced Values (alphabetical by buyer) Adobe Aviary Offers a mobile pho editing ol. Agile Sports Technologies Apple UberSense Prss Develops mobile video analysis solutions and applications for coaches and athletes. Develops an online application for creating and publishing digital magazines. Aqua (WPP) Applogix Develops powerful web analytics ols. Best Docrs Cambridge Healthtech Institute car2go (Daimler) Rise Health OpenHelix RideScout Operates as a population health management company with a clinical data technology platform. Operates a bioinformatics and genomics search and training portal for researchers, institutions, teachers and students. Provides a mobile app that combines public, private and social ride options on a single platform. Clearstream.TV EngageHD Provides a mobile ad targeting platform. 3

4 Buyer Seller Target Description Connexin Software (Bluff Point Associates) Credentials Flipboard GfK Givex Google Workflow.com escrip-safe (Scrip- Safe Security) Ultravisual (Technicolor) Cogenta Systems Marqui Lynx Design Offers license and SaaS-based software for electronic health records, practice management, document imaging, etc. Provides high schools, universities and third-party recipients with an electronic transcript delivery network. Develops a pho and video editing app with a built-in social network. Provides market intelligence solutions enable retailers and manufacturers increase sales, monir pricing data, and more. Provides web marketing software for marketing and sales teams manage demand generation campaigns. Creates medical technologies, including Lift Pulse, a tremor measurement and moniring app using sensors in smartphones. Enterprise Value ($mm) Google Polar Provides a mobile survey app with graphics. HCA Holdings HealthPort (ABRY, Brightwood Capital) Hearst Magazines HootSuite Media HootSuite Media Lyft Maestro Healthcare Technology Mixpo OPIE Software Piano Media PatientKeeper One Source Document Management KUBRA Data Transfer (Clairvest Group) Brightkit Zeetl Hitch WealthCare Marketplace (Alegeus) ShopIgniter Futura International Press+ (R.R. Donnelley) Offers healthcare software applications for clinical and financial workflows physicians. Provides cusmized medical record scanning and copying services for release of information. Provides integrated multi-channel outsource solutions, including document print and mailing, e-billing, payment solutions, etc. Offers an online platform enable marketers launch contests, branded galleries and apps on their website, Facebook page, etc. Provides an online application for companies monir feedback on social media. Provides an on-demand solution share a private ride with passengers heading in the same direction in San Francisco. Provides private health insurance exchange technology. Offers a social commerce platform for large retailers, brands and agencies inspire their consumers discover their products. Provides software solutions for the orthotic and prosthetic, durable medical equipment and dialysis markets. Provides technology and marketing support that enables publishers charge for select web access and digital content. PracticeMax OptiMED Management Provides business management services for physicians. Premiere Global Services Salt Creek Capital Science Media TalkPoint Holdings Apartment Data Services (Eberhart Capital) PlayHaven (Upsight) Offers audio and video webcasts, as well as webinars for streaming audio, synchronized slides, interactive Q&A, etc. Operates as an online data services company that sources and sells real-time, hisrical and localized apartment rental data. Operates as a real-time mobile game marketing platform with promotion and monetization. Sharethrough Viral Ad Network Provides an online content distribution platform. SK Telecom Skyword (American Public Media Group) Shopkick Vidaao Offers kick, a mobile app that offers deals and rewards for shopping in various sres. Offers an enterprise-level project management system help marketing teams manage the production process online. 4

5 Buyer Seller Target Description TELUS Health Solutions XD3 Solutions Provides dispensary management software solutions for pharmacies. Enterprise Value ($mm) Teradata Think Big Analytics Provides big data and advanced analytics consulting services. Ticketmaster (Live Nation) Eventjoy Vemory Splice (Path 36) Viverae OneHealth Solutions Provides online and mobile apps for organizing events, ticketing, and more. Provides video editing services, including ols cut video clips with a drag and drop feature. Develops social networking solutions and behavioral change programs that drive member engagement improve health. Vook Byliner Offers online book publishing and subscription services. Yahoo! ZirMed (Sequoia Capital) Luminate MethodCare Offers technology deliver content relevant online images and provide layers of informational content on online images. Provides big data analytics help healthcare organizations achieve financial and clinical excellence. About David Clark David Clark, a Managing Direcr with JEGI, provides M&A advisory services traditional and technology-enabled marketing services companies. Mr. Clark s focus and transaction experience also includes companies in adjacent markets, such as business information, market research, application software and information technology services. Mr. Clark has nearly 20 years of experience in investment banking and business development consulting. Prior joining JEGI, he was a Managing Direcr at Deloitte & Touche Corporate Finance and a senior member of Deloitte s global TMT (Technology, Media & Telecom) industry practice. At Deloitte, Mr. Clark acted as financial and strategic advisor US and international companies on cross-border M&A assignments, joint ventures and growth capital financings. Previously, he served as Vice President of the Bank of Tokyo s New York Investment Banking Group where his responsibilities included managing the bank s US venture capital and private equity relationships and investment portfolio. In 2008, Mr. Clark was elected the Board of Direcrs of the Massachusetts Information & Technology Exchange (MITX), the leading industry association bringing gether digital technology, marketing, and media professionals engage in what is next for the web and how it impacts the marketing and business worlds. Mr. Clark earned an MBA from the University of Virginia-Colgate Darden School of Business, an MA in International Studies from the University of Virginia College of Arts and Sciences, and a BS in Economics from Washingn University in St. Louis. Mr. Clark is a certified NASD representative. 51

6 About The Jordan, Edmisn Group, Inc. The Jordan, Edmisn Group, Inc. (JEGI), headquartered in New York, NY, has been the leading independent investment bank for the global media, information, marketing and technology secrs for nearly 27 years. The firm has completed over 500 high-profile M&A transactions for global corporations; middle-market and emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more information, visit Select Recent JEGI Technology Transactions* a leading tech-enabled search and digital marketing agency a leading mobile app market intelligence and analytics provider a full service competitive advertising tracking firm a portfolio company of a leading provider of shopping and shopper marketing software and services has received a significant investment from SaaS-based applications for the consumer products licensing industry July 2014 May 2014 Ocber 2013 May 2013 Ocber 2012 a portfolio company of has sold the leading provider of sales enablement and business intelligence SaaS solutions & Ocber 2012 a global leader in digital engagement specializing in promotions and loyalty campaigns across mobile, social and web August 2012 a SaaS marketing platform (CRM) for real-time, multi-stage, and multi-channel marketing including social media, , and mobile May 2012 a leading developer of online shopping solutions for local media a consortium of eight leading media and publishing companies: Advance Digital, A.H. Belo Corporation, Cox Media Group, Gannett Co. Inc., Hearst Corporation, MediaNews Group, The McClatchy Co., and The Washingn Post November 2011 the leading SaaS platform for retail transaction optimization solutions Ocber 2011 the leading provider of consumer shopping predictive targeting data a divison of a pioneer and leading SaaS provider of talent analytics HR and C-level professionals a pioneer and leader in mobile entertainment services a leading provider of mobile workforce management solutions for field service a portfolio company of an online behavioral targeting network for $100,000,000 for $52,000,000 March 2014 May 2012 for approximately $95,000,000 *Some of the transactions highlighted above were completed by JEGI Managing Direcrs Joseph Sanborn and Jeff Becker, prior joining the firm. Wilma Jordan Founder & CEO wilmaj@jegi.com Scott Peters Co-President scottp@jegi.com Tolman Geffs Co-President lmang@jegi.com Richard Mead Managing Direcr richardm@jegi.com David Clark Managing Direcr davidc@jegi.com Amir Akhavan Managing Direcr amira@jegi.com Joseph Sanborn Managing Direcr josephs@jegi.com Jeff Becker Managing Direcr jeffb@jegi.com Tom Pecht Managing Direcr mp@jegi.com Adam Gross CMO adamg@jegi.com Bill Hitzig COO billh@jegi.com Tom Creaser EVP mc@jegi.com Sam Barthelme Direcr samb@jegi.com 150 East 52nd Street, 18th Floor New York, NY